ABA to President Obama: Abolish Credit Unions’ Tax Exemption

As expected, the American Bankers’ Association (ABA) has pounced on congressional examination of tax exemptions as an opportunity to attack the credit union tax model.

In a letter to President Barack Obama late last week, ABA president/CEO Frank Keating said credit unions are operating like a “Tax-free banking system.” Using some of the same arguments regional banking associations made to attack the credit union tax model in state legislators, Keating questioned the size and purpose of some credit unions.

“Preferential tax treatment cannot be justified by the credit unions’ structure as not-for-profit, cooperatively owned institutions,” Keating wrote. “Today’s credit unions are increasingly targeting their services to wealthier customers and expanding their product offerings beyond their tax exempt including the originations of large commercial real estate loans.”

The Keating letter can be found online.

 

Questions? Contact Lynn Heider: 503.350.2225, lheider@nwcua.org.

Posted in Advocacy News, Federal.